Interactive Investor has bolstered its offering by adding an entry-level package to its subscription service.
Due to launch 1 February, the ‘Investor Essentials’ package will allow customers to invest up to £30,000 for a £4.99 a month price point.
Investor Essentials includes free regular trading and £5.99 fees for investment trusts, funds, and UK and US shares.
However, it does not include free monthly trades or Junior Isas – which are features on the pricier ‘Investor’ and ‘Super Investor’ subscriptions.
Once a portfolio passes the £30,000 threashold, the customer will be upgraded to the ‘Investor’ price plan of £9.99 per month.
Richard Wilson (pictured), Interactive Investor chief executive, described the launch as a “pivotal moment”.
“No longer do you need to reach for the calculator to work out at which point in time fixed fees become an obvious cost-saving choice for your investments. Interactive Investor now takes care of that with a simple, transparent service to meet a range of needs and budgets – and the added benefit of free regular investing.
“Historically, a percentage-based charging structure has generally been cheaper for people near the start of their investment journey. Providers then hope that their customers will stick with them without ever calculating the cost savings they could be making over the long-term as their investment grows. Investor Essentials, with its low monthly cost, changes everything and provides greater value and choice to a much broader audience.
“Nor does paying less have to mean less choice. Investor Essentials comes with the same wide range of funds and investment trusts, whether active or passive. And the same huge range of UK and overseas shares, so you can invest in the world’s biggest brands, or seek out the hidden gems. All with great educational content, insights, and research tools to help you become a better investor.”